FUNDS OVERSEAS

New Zealand Herald, Volume LXXVII, Issue 23662, 22 May 1940, Page 11

FUNDS OVERSEAS

PAYMENT FOE GOODS

LIMITED USE ALLOWED RULING BY MINISTER Notwithstanding the ban imposed by the Finance Emergency Regulations, 1940, funds acquired, and held overseas prior to April 11, the date of the regulations, may be used in payment for goods covered by import licences which were issued conditionally on payment being made from such funds. Information to this effect lias been received by the Bureau of ]mpprters from the Hon. W. Nash, in his capacity as Minister of Customs. The bureau wrote to him as Minister of Finance on April 19, pointing out that a number of "no remittance" licences had recently been issued to importers, payment for the goods to be made from funds held abroad. In view of the fact that the new regulations prohibited the transferring abroad of any right to receive payment or consideration, the bureau desired to know whether licences of the class mentioned were exempt from the operation of the regulations. It asked for an early pronouncement on the matter. Clarification Needed Tho Minister's reply, which was not given until May l.'l, stated: —"The possession of an import licence in no way affects tho provisions of the regulations, and payment for goods imported under licences cannot he made in contravention of the regulations. If, however, a licence had been granted on condition that payment was to .be effected by means of funds acquired and held abroad, there would be no objection to payment being effected in that manner, provided that the funds were acquired and held overseas prior to April 11, when the regulations in question became operative." In a letter to the Minister this week, the president of the bureau,' Mr. Gainor Jackson, asked that the relationship between tho two statements in the reply bo clarified. Mr. Jackson pointed out that the Minister of Customs granted permission for payment under an import licence to he effected, but that apparently the holding of a "no remittance" licence granted by him in no way affected tho provisions of the new regulations, which prohibited such payment except with the approval of the Minister of Finance. Was a licence relating to funds held abroad prior to April 11 a sufficient protection for the importer, the ' writer asked, and was the authority of the Minister of Customs synonymous with that of the Minister of Finance in such cases? Goods ol Two Periods

Mr. Jackson lias addressed a separate inquiry to the Minister of Customs concerning the requirement that goods covered by second-period import licences must be shipped from Britain not later than May 29. He states that the trading banks, and one of them in particular, are refusing to remit exchange granted under second-period authorities unless the goods in question are shipped by that date. This is considered unfair, as, under the system of deferred exchange remittance, many second-period goods have been paid for out of third-period exchange authorities, and the remaining second-period balances will be required to pay for third-period goods. Mr, Jackson asks that a definite ruling be given on the matter, allowing reasonable latitude, particularly as regards mixed shipments of goods belonging to both periods.